A floating holiday is a paid day off that an employee can take at their discretion. It is called a floating holiday because it "floats" or moves to the date when the employee takes it every year. Floating holidays are generally given in addition to the typical paid holidays that most employers provide as a benefit.

Floating holidays are different from paid time off (PTO) in that employees use floating holidays at their discretion to celebrate special occasions such as birthdays, anniversaries, cultural events, etc. . However, they dont roll over year to year. PTO, on the other hand, is also compensated time off of work, and employees can use it as they see fit. Time is usually measured in hours and covers absences like sick days, vacations, and personal time. Unlike floating holidays, unused PTO hours can usually be carried over to the next year.

Floating holidays are also different from paid holidays in that employees can take a floating holiday on any day they choose, whereas paid holidays are typically designated by the employer. Employers may offer floating holidays as a way to embrace diverse cultures or religious beliefs.

It is important for employees to have a clear understanding of what they can expect when it comes to floating holidays, such as whether they can choose any day on their own or if some days are already designated.